Gold prices surged on Wednesday as rising uncertainty surrounding U.S.-China trade relations and global economic anxieties heightened demand for safe-haven assets.
In Dubai, gold rates experienced an uptick, with 24-carat gold rising by AED2.75 to reach AED406.00. Likewise, 22-carat gold saw an increase of AED2.50, bringing its price to AED376.00. Additionally, 21-carat gold is up by AED1.50, now priced at AED360.50, while 18-carat gold has climbed by AED2.00, reaching AED309.00.
Spot gold was up 0.3 percent at $3,361.03 an ounce (currently trading above $3,357), as of 03:58 GMT. U.S. gold futures increased by 0.2 percent to $3,384.20 (currently trading above $3,375). “We potentially see dip-buyers coming back into the picture and… things are still uncertain, especially surrounding the trade relationship between China and U.S. and even in EU and U.S. as well,” Reuters reported, citing Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.
Gold is widely regarded as a safe-haven asset during times of economic instability. China’s Foreign Minister Wang Yi informed the U.S. ambassador to Beijing on Tuesday that the U.S. should establish the necessary conditions for bilateral relations to return to “the right track.” The White House indicated that President Donald Trump and Chinese President Xi Jinping may engage in discussions later this week to tackle the trade disputes.
Read more: Dubai 24-carat gold price falls today to AED405.75, global rates retreat with dollar rise
OECD economic warnings
In the meantime, the U.S. announced it would refrain from doubling steel and aluminum tariffs on Britain. Global economic concerns intensified after the Organisation for Economic Cooperation and Development (OECD) cautioned on Tuesday about a sharper-than-anticipated economic slowdown, attributing it to the Trump administration’s trade policies which are exerting significant pressure on the U.S. economy.
“(The OECD report) for sure will be another supporting factor to see safe demand being heated up as well from a medium-term perspective,” Wong commented. Economic data indicated that U.S. job openings rose in April; however, layoffs surged to their highest level in nine months, indicating softening conditions within the labor market. Federal Reserve officials reiterated their cautious policy stance on Tuesday, citing risks stemming from trade tensions and economic uncertainty.
Elsewhere, spot silver remained steady at $34.48 an ounce, platinum rose by 0.6 percent to $1,078.96, while palladium decreased by 0.5 percent to $1,005.44.
